- HC Wainwright has initiated coverage on Apellis Pharmaceuticals Inc APLS with a Buy rating and a $75 price target.
- The analyst expects Apellis's C3 inhibitor, pegcetacoplan, to be approved and become a blockbuster in geographic atrophy (GA) with peak sales of over $2 billion.
- Pegcetacoplan is already approved in IV formulation for a life-threatening blood disorder PNH under the brand name Empaveli, where it has shown itself to be more effective than Alexion's C5 inhibitors, the analyst notes.
- HC Wainwright sees peak sales for Empaveli approaching $1 billion in PNH and other key label expansion opportunities.
- Earlier today, Apellis submitted its US marketing application for GA and could receive approval before year-end representing a meaningful catalyst for shares.
- A market cap of $4.8 billion implies that investors are crediting the company's C3 franchise with blockbuster potential. But the analyst does not fully appreciate the opportunity for pegcetacoplan to generate sales above $2.5 billion in GA alone.
- Additionally, the company has significant strategic value for larger companies that recognize the need for a proven complement-focused platform, says HC Wainwright.
- Price Action: APLS shares are up 18.30% at $52.97 during the market session on the last check Tuesday.
© 2022 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.